RCI Management Services $2.95M Settlement Over Fingerprints Collected Without Consent

The lawsuit centers on the use of fingerprints to facilitate purchases and/or enroll patrons in VIP programs at two Illinois adult-entertainment venues—Scarlett’s Cabaret (Washington Park) and Rick’s Cabaret (Chicago)—between Sept. 17, 2017, and June 18, 2025. Fingerprints are considered “biometric identifiers,” and unlike a password or credit card number, they can’t be changed if compromised. That permanence is why Illinois’ Biometric Information Privacy Act (BIPA) requires businesses to give specific written notices about what biometric data is being collected, why it’s being collected, how long it will be kept, and to obtain written consent before collecting it, along with maintaining a publicly available retention and destruction policy. Plaintiffs filed the class action alleging the companies collected patrons’ fingerprints without those required disclosures and written consent, in violation of BIPA. The defendants denied wrongdoing but agreed to a $2.95 million settlement to avoid the cost and uncertainty of continued litigation; the settlement received final court approval on Oct. 16, 2025. Instead of cash payments, eligible patrons who submit a timely claim can receive a one-year VIP membership card (valued at $1,000) for one of the clubs, reflecting how BIPA cases often focus on the legality of the collection practice itself rather than proving traditional financial loss. More broadly, this case fits into a long-running wave of Illinois biometric privacy litigation affecting many industries that use fingerprint or facial recognition systems—retailers, restaurants, employers with time clocks, and venues using biometrics for entry or loyalty programs. BIPA is among the strictest U.S. biometric privacy laws because it creates a private right of action and allows statutory damages per violation, which has driven companies to tighten compliance (clear written policies, informed written releases, limits on sharing, and documented deletion schedules) and has made Illinois a bellwether for how biometric technologies are governed in consumer-facing settings.